Budget 2018 and business

BusinessNZ Chief Executive Kirk Hope said some of the big ticket items in the Budget would help support business growth.

“An investment of $28 billion over 10 years in Auckland transport will improve infrastructure in our largest city, helping support the ability of business to grow and employ more.

“Large investments, in the Provincial Growth Fund and the Green Investment Fund, will also support the ability of businesses to grow and innovate using new technologies.

“And the establishment of an R&D tax credit will boost the support available to businesses that need to invest in innovation to become more competitive.”

Mr Hope said other spending, including $3.9 million to counter major cyber threats or events, was well-placed to address business vulnerabilities such as cybercrime.

He said other spending items were less obviously positive for business.

“The Budget allows full tax deductibility for racing industry bloodstock. Full capital tax deductibility helps to increase investment in technology, capital and grow productivity, which is important for all businesses. Business believes capital deductibility should be available to all businesses and industries, not just racing.

“The Budget also announces a new unit to oversee councils’ consistency of compliance with the Resource Management Act. This may help address some of the RMA’s problems, however council inconsistency is not the only or most significant problem with the RMA. Business continues to seek fundamental reform to this Act rather than a new compliance unit or other marginal changes.”